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Music City Center gives $40M for Nashville's tight budget as city faces economic loss from COVID-19

Nashville's Music City Center is shouldering some of the financial burden the city is facing as the coronavirus continues to take its toll on the economy, sending another $40 million to help with the city's tight budget.

The Convention Center Authority voted unanimously Thursday to provide Metro with the one-time funds during its monthly board meeting. The group operates Music City Center.

The money will be broken down to $5 million for the current budget and $35 million for next fiscal year. The money comes from the millions the center collects from tourist-targeted taxes and fees from the downtown area. The money will be allocated to assist Metro with expenses that are related to tourism.

“We are fortunate to be in a position during these uncertain times where we can help the city of Nashville with its budgetary challenges,” MCC President and CEO Charles Starks said in a statement Thursday. “We value our strong partnership with Metro as we extend our support to the city.”

A sign outside of Music City Center explains COVID-19 precautions in downtown Nashville, Tenn., Wednesday, March 25, 2020. Downtown Nashville was eerily slow on Wednesday afternoon as the coronavirus outbreak continued to force many people indoors.(Photo: Andrew Nelles / The Tennessean)

Convention staff, he added, are being fully compensated as non-operational team members continue to work remotely.

But now, the epidemic has forced non-essential businesses to close and Nashville residents are spending less time outside, and city officials are forecasting a $200 million to $300 million shortfall in expected taxes and other revenue for the current budget.

During his State of Metro address last week, Cooper said "immediate action" is required to meet the sudden budget shortfall.

“Tough decisions are required in the weeks and months ahead to get us through this crisis and to give us a better future. We are already taking steps to shore up our cash flow," he said. "But unfortunately, these steps will not be enough to cover our revenue shortfall.”

The city has already implemented a hiring and travel freeze for Metro government and Cooper warned he will propose a sharp increase in property taxes to meet the city's needs.

Aerial photo of Demonbreun showing Music City Center among other buildings taken from the office of Bass, Berry & Sims on Wednesday December 18, 2019. (Photo: Alan Poizner)

It remains unclear how much the ongoing crisis will impact city finances in the future, as city officials gear up for talks to approve next year's budget by June 30. Cooper is expected to present his budget by the end of April.

The convention center in downtown Nashville will serve as a 1,600-bed, non-ICU facility for positive patients.

The space will undergo several alterations — including HVAC adjustments — to get exhibition halls under negative pressure, running piping for oxygen and setting up temporary modular partitions for patients.

Across Tennessee there are 168 hospitals, mental health and long-term care facilities with the capacity of roughly 24,700 beds, according to state hospital reports.

In addition to Music City Center in Nashville, the Gateway Shopping Center in Memphis will serve 170 COVID-19 patients who need hospital care. Officials have also selected the Chattanooga Convention Center and Knoxville Expo Center for surge capacity.

The coronavirus is a pandemic that continues to impact life in Tennessee in a variety of ways. The USA Today Network newsrooms in Tennessee are uniquely positioned to cover this crisis. We're providing this critical information for free. To support our mission, please consider a subscription. For more information on COVID-19, please visit cdc.gov/coronavirus.